Housing Authority of the County of HowardLocal Government

Housing Authority of the County of Howard respectfully submits the following corrective action plan for the year ended June 30, 2025. Responsible Official: Mr. Ross Allen, Executive Director Name and address of independent public accounting firm: Miller & Rose, PA 1309 East Race Searcy, AR 72143 Audit period: Year ended June 30, 2025 Oversight Agency: U.S. Department of Housing and Urban Development The finding from June 30, 2025, audit is discussed below. The finding is numbered to correspond to the auditing findings disclosed in Sections B and C of the Schedule of Findings and Questioned Costs. C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAMS AUDIT 2025-01 Family file Deficiencies 14.850 Public and Indian Housing Program Criteria and Criteria: The Authority’s purpose for existence is to provide decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent to be charged to eligible families. HUD regulations prescribe the content of these family files. These requirements consist of the following: Criteria: Our review of 23 family files revealed the following: a. As a condition of admission or continued occupancy, the tenant and other family members provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies. Context: Our review of 23 family files revealed the following: a. One file with a delinquent annual reexamination. b. One file lacked verification of childcare deduction. c. Two files contained rent calculation errors. Effect: Delays in performing annual reexaminations may result in under charging the tenant rent and thus understating dwelling rental income. Deduction for medical expenses and childcare could be overstated without proper verification and could result in an incorrect rental charge to the tenant. Rental calculation errors may result in an incorrect rent charge to the tenant, Recommendation: The Authority should ensure all tenant reexaminations are performed timely. Verification of medical and childcare deductions should be documented with appropriate documentation. The Authority should ensure the proper verified income is used in calculation of rent charges to the tenant. Response: We have modified policies and procedures to ensure all re-examinations are performed timely, appropriate deductions are documented and rental charges are calculated correctly. Views of Responsible Officials and Planned Corrective Actions: We will review tenant’s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We anticipate a complete resolution of this type of error by February 29, 2026.